Seoul stocks inch up as foreigners go shopping

Korean shares closed higher on Monday as foreign investors picked up shares ahead of the upcoming U.S. Federal Reserve rate meeting on Tuesday. The Korean won depreciated against the U.S. dollar.

The benchmark Kospi inched 1.71 points, or 0.08 percent, higher to end the session at 2,071.09. Trading volume was moderate at 438.22 million shares worth 4.63 trillion won ($4.1 billion).

“It is unlikely that the U.S. Federal Reserve maintains its hawkish stance due to concerns over the slowing economy and trade disputes with China and uncertainties in Europe,” said Baek Chan-gyu, an analyst at Korea Investment & Securities. “The stock market is expected to show limited movement until uncertainties are somewhat cleared.”

Foreign investors turned net buyers, scooping up a net 65.4 billion won, and institutional investors also picked up a net 204.4 billion won worth of local shares. Meanwhile, retail investors offloaded a net 258.7 billion won worth of shares.

The secondary Kosdaq fell, dropping 4.44 points, or 0.67 percent, at 661.90. The tech and bio-heavy index was dragged down by a 1.84 percent decline in the U.S. Nasdaq Biotechnology Index on Friday. Institutions have been net sellers for three consecutive sessions in the junior bourse.

The Korean won closed at 1,131.30 won against the greenback, up 0.50 won from the previous trading session’s close.